Sales for LululemonAthletica Inc. (LULU) improved in the third quarter of 2020 alone. In addition to the expansion of its strategy, the LululemonAthletica Inc.’s revenue is expected to expand soon.
It was announced back in 2019 that LululemonAthletica’s primary goals would be. There were several priorities, as follows:
- Expansion of the men’s product category (twice the revenue in four years).
- Addition of new products to the lineup.
- Improving digital consumer experience.
LululemonAthletica (LULU) reported that sales of men’s products grew along with women’s during the second and third quarters of 2020. Therefore, the LULU stock has achieved its goal of changing its brand’s perception and expanding its use beyond one gender category.
Lululemon continues to be successful in the digital sales segment. Its digital sales grew 93% year-over-year in the third quarter. When the LululemonAthletica Inc.’s stores were closed due to lockdown, LululemonAthletica managed to maintain sufficient revenue because of digital sales. By maintaining contact with shoppers through digital sales channels, LululemonAthletica has not noticed a significant drop in traffic since returning to service. As of the second quarter, revenues were up by 2 % YoY, while in the third quarter, they were up by 22 % YoY.
A key reason for the pandemic’s success was that LululemonAthletica’s critical customers remained unaffected. Moreover, the LULU could also market its comfortable sportswear to new customers who seek comfort from remote work, at the gym, etc. According to the retailer’s current rate of growth, it may achieve its objectives by 2023.
The stock price of LululemonAthletica (LULU) was $308.75 at the previous market close; its latest volume was 1.02 million. With a share of 130.32 million outstanding and an average daily volume of 1.43 million, LULU stock’s market value is $315.22.